- CNBC’s Jim Cramer on Wednesday offered a list of off-price retailer stocks investors should have on their radar.
- “There’s an inventory glut in the traditional retailers and the big chains are desperate to get rid of this stuff so they can bring in new product,” the “Mad Money” host said.
CNBC’s Jim Cramer on Wednesday offered a list of off-price retailer stocks investors should have on their radar.
“There’s an inventory glut in the traditional retailers and the big chains are desperate to get rid of this stuff so they can bring in new product,” the “Mad Money” host said. “The off-price chains are the buyers of last resort.”
Here is his list of companies investors should be eyeing:
- TJX
- Burlington Stores
- Ross Stores
- Ollie’s Bargain Outlet
Retail giants have reported earnings this week, with some faring better than others.
Walmart beat on earnings and revenue in its second quarter results reported Tuesday. But the company reiterated its profit warning from last month, and CEO Doug McMillon cautioned in an interview Tuesday on “Squawk on the Street” that even wealthy consumers are becoming more frugal due to inflation.
Target reported a wider-than-expected miss on earnings in its latest quarter on Wednesday and saw profit fall nearly 90% from the same period the year before. The company had warned in June that its plans to get rid of excess inventory would be a headwind to its bottom line.
Cramer said that Target’s dismal results reflect consumers’ shift in appetite for experiences rather than goods, stemming largely from a desire to go out after staying inside during the height of the pandemic.
While this change in consumer spending means there’s a window to buy off-price retailers, investors should understand these stocks are long-term opportunities, he added.
“It doesn’t mean that they’re doing that great right now,” he said.
Source: Business - cnbc.com
